Mobile App Hosting – Government clarifies on Chinese investment in Koo app, according to rules – The Koo app came into the limelight recently, when many government departments and celebrities started connecting with it. It started being described as a native version of Twitter. the govt has clarified that the Chinese company’s investment in microblogging app Koo is consistent with the principles .
The govt has clarified that the investment of the Chinese company in microblogging app Koo is consistent with the principles and therefore the development of this app has taken place within the country itself.
Mobile App Hosting – Government clarifies on Chinese investment in Koo app, according to rules
What’s the matter
The Koo app came into the limelight recently, when many government departments and celebrities started connecting with it. It started being described as a native version of Twitter. But controversy has started on the news that Chinese company Shunwei Capital has invested in Bombinate Technology, the parent company of this app. However, his investment within the company is a smaller amount than 9 percent.
Question in Lok Sabha
The question was asked within the Lok Sabha whether the govt is aware that a Chinese firm has invested within the parent company of Koo App? during a written reply to the present question, on Wednesday, Minister of State for Electronics and knowledge Technology Sanjay Dhotre said that before April 17, 2020, one hundred pc investment in IT companies was allowed through the automated route. This investment was made before that, so it’s consistent with the rule. On 17 April 2020, the govt brought a replacement notification, consistent with which strict checks were arranged for FDI coming from neighboring countries.
These are the main investors
The major investors of this app include former cricketer Javagal Srinath, Book My Show founder Ashish Hemrajani, Udaan’s co-founder Sujit Kumar, Flipkart CEO Kalyan Krishnamurthy and Zerodha’s founder Nikhil Kamat.
Sanjay Dhotre said, ‘In Press Note 3 of DPIIT, FDI Policy Clause, Para 3.1.1 (a) states that a non-resident company can invest in India as per FDI policy, only those sectors and activities Except where it’s withheld. But if there’s investment of companies from countries bordering India or the citizens of such a rustic are taking advantage of this investment, then the investment are going to be allowed only after government investigation. He said that the Chinese investment in Koo app is before this new press note of DPIIT.